A friend in the cryptocurrency world, three years ago, after finishing a phone call with me, said he had blown up his contracts three times and was in debt of 20 million. Then he disappeared without a trace. It turned out he had been in seclusion for three years, and now, after clearing his debts, he has several small fortunes, earning a monthly income in the seven figures and an annual income in the eight figures in the cryptocurrency world!
In the cryptocurrency world, earning 20 million in capital from several tens of thousands is only possible through rolling positions.
Once you have 1 million in capital, you'll find that your whole life seems different. Even if you don't use leverage, just a 20% increase in spot trading gives you 200,000, which is already the ceiling of annual income for the vast majority of people.
Moreover, when you can grow from tens of thousands to 100,000, you will grasp some ideas and logic for making big money. At this point, your mindset will calm down significantly, and from then on, it's just a matter of copying and pasting.
Don’t always think in terms of millions or billions; start from your actual situation. Bragging only makes the braggers feel good. Trading requires the ability to identify the size of opportunities; you can't always trade lightly or heavily. Usually, just trade lightly, and when a big opportunity arises, then bring out the heavy artillery.
For example, rolling positions can only be done when a big opportunity comes. You can't keep rolling; missing out is okay because you only need to successfully roll three or four times in your life to go from zero to tens of millions. Tens of millions is enough for an ordinary person to step into the ranks of the wealthy.
First, we need to know under what circumstances rolling positions are suitable:
Currently, only the following three situations are suitable for rolling positions:
1► Choosing a direction after a long-term sideways volatility reaches a new low.
2► Buying the dip after a significant drop in a bull market.
3► Breaking through major resistance/support levels on a weekly chart.
In general, only these three situations have a higher chance of success; all other opportunities should be abandoned.
Common view:
Defining rolling positions: In a trending market, after significantly profiting using leverage, due to the overall leverage passively decreasing, to achieve a compounding profit effect, increase the trend position at the right time. This process of increasing positions is called rolling positions.
The following are methods for manipulating rolling positions:
● Adding to positions with floating profits: After gaining floating profits, consider adding to positions. However, before adding to positions, ensure that the cost of the holdings has been reduced to minimize the risk of loss. This does not mean blindly adding to positions after making profits; it should be done at the right moment.
● Base position + T-trading rolling operation: Divide funds into multiple parts, keeping a portion of the base position intact while using another part for high sell-low buy operations. The specific ratio can be chosen based on personal risk preference and fund size. For example, you can choose half a position for rolling T-trading, 30% base position for rolling T-trading, or 70% base position for rolling T-trading, etc. This operation can reduce holding costs and increase profits.
The 'right moment' in the definition, in my opinion, mainly has two types:
1. Adding positions during a convergence breakout in a trend, quickly reducing the added position after a breakout to catch the main upward wave.
2. Increasing trend positions during a pullback in a trend, such as buying in batches during a pullback at moving averages.
There are various specific methods for rolling positions, the most common being to achieve this through adjusting holdings. Traders can gradually reduce or increase their holdings based on changes in the market conditions to achieve profit. Traders can also use trading tools like leverage to amplify gains, but this will also increase risk.
There is a very simple method with an almost 100% profit rate! I made a little profit using this clever method.
1. When the market crashes, if your coin only slightly declines, it indicates that there are market makers protecting the price from falling. Such coins can be held with confidence, and there will definitely be rewards in the future.
2. For beginners trading coins, there is a simple and direct method: for short-term trading, look at the 5-day moving average; as long as the coin price is above the 5-day line, hold it, and sell it once it falls below. For medium-term trading, look at the 20-day moving average; if the coin price is above the 20-day line, hold it, and exit if it falls below. The method that suits you is the best, and the key is to stick to the execution.
3. If the main upward trend of a coin has formed and there is no obvious increase in volume, buy decisively. If the volume increases, continue to hold; if the volume decreases but the trend remains intact, also hold; if the volume decreases and breaks the trend, reduce your position quickly.
4. After short-term buying, if the coin price does not move within three days, sell if you can. If the price drops after buying and the loss reaches 5%, stop-loss unconditionally.
5. If a coin has dropped 50% from its high and has fallen for 8 consecutive days, it indicates that it has entered an oversold state, and a rebound could happen at any time; consider following in.
6. When trading coins, choose leading coins because they rise the most when they go up and are the most resilient when they fall. Don't buy just because the coin price has dropped significantly, and don't avoid buying just because it has risen significantly. When trading leading coins, the most important thing is to buy at high points and sell at even higher points.
7. Trade in line with the trend; the buying price isn't about being as low as possible but rather about being as suitable as possible. Don't easily declare a bottom during a decline and abandon coins that perform poorly. The trend is the most important.
8. Don't let temporary profits make you lose your head; understand that sustained profits are the hardest to achieve. Reflect seriously and see if your profits are due to luck or skill. Establish a stable trading system that suits you, as this is key to sustained profits.
9. Don't force trades without sufficient confidence. Being in cash is also a strategy, and learning to stay in cash is important. In trading, the first consideration should be to protect capital, not to profit. Trading is not about frequency but about success rate.
Wealth code focused on long-term trends:
Halving cycle layout: 180 days before Bitcoin's halving, prepare BTC, BCH, and other halving coins in advance and hold until 30 days after the halving.
Leading coin supplementary rise law: When the market's leading coin rises by 200%, prioritize selecting second-tier coins in the same sector that have risen less than 50%.
Technical triple verification: Weekly MACD golden cross + daily breakout from the box + hourly volume surge forming a golden buying point.
Institutional holdings analysis: When large addresses continue to increase their holdings, combined with a surge in on-chain transaction volume, it is a signal to start.
Bear market dollar-cost averaging strategy: Invest 10% of your capital monthly, choosing blue-chip coins like BTC and ETH, and after 12 months of continuous investment, the return exceeds 300%.
Risk warning: The above strategies need to be adjusted according to real-time market conditions. It is recommended for beginners to first test with a simulated account, with a single trade loss not exceeding 2% of total capital. The market has risks, and investment should be cautious.
Elevate your realm
Be outside the market -- a balanced lifestyle.
This point seems unrelated to trading, but it is actually the most important. This is the foundation for traders to achieve stable long-term performance.
For traders, the time spent not trading is the most important.
Handling life outside of trading is very important, including adjusting your physical/mental state, time management, and handling interpersonal relationships, etc.
Just as appreciating Chinese landscape painting, the blank spaces are the most important.
Psychologists say that our psychological composition has different components. Some parts seek stimulation, some seek attention from others, and some seek security, etc.
When you are outside the market, you need to satisfy these parts. Otherwise, these will manifest in your trading and create danger.
Everyone brings their psychological issues into the market; if you realize you have psychological problems, you should address them outside of trading, or they will definitely show up in your trading and cause losses.
Thus, a successful trader generally has a balanced life, arranging family, health, work, and every aspect well, and crises are less likely to occur.
When trading, it’s essential to be very relaxed and calm, which is one of the conditions for achieving trading success. Like in other industries, the higher the position, the better the temperament, and the more well-managed various aspects.
I hope everyone remembers these 10 points, writes down the title, and posts it next to the computer or somewhere else visible at all times. This work should be done immediately.
The importance of a correct working procedure exceeds skills like market analysis and trading level. Beginners often overlook this and focus more on specific trading techniques.
Many experienced traders fail on this point. These 10 aspects should be constantly trained, actively noticed, and gradually improved from each aspect.
Think like a successful person, trade like a successful person, and handle your life like a successful person! How many steps do you usually go through when you make a trade?
Give a rose to others, and the fragrance remains on your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!#以太坊突破3700 $BTC